Blockcap

About Blockcap

Blockcap, Inc. operated as a blockchain technology company with a primary focus on industrial-scale digital asset mining. Founded in 2020 by blockchain industry veterans, the Austin, Texas-based firm quickly emerged as a significant player in North America's cryptocurrency mining sector. The company was established by Darin Feinstein, an entrepreneur and early Bitcoin investor with a background in accounting, law, and investment banking. Feinstein's journey into the digital asset space began in 2012, leading him to co-found Core Scientific in 2017 to build large-scale infrastructure for Bitcoin mining in the United States, and later Blockcap to focus on mining operations.

The business was structured around three divisions: a mining division, a digital treasury assets unit, and a venture investments arm. Its core activity involved mining Bitcoin, leveraging economies of scale from combining the assets of five pre-existing mining companies upon its formation. This strategy aimed to secure favorable terms on equipment purchases and manage energy risks efficiently. Blockcap's mining fleet consisted of thousands of next-generation mining rigs, which were hosted at data centers in the United States, including facilities run by Core Scientific. At one point, its operations accounted for nearly 1% of all Bitcoin network transactions.

Blockcap's significant growth and operational scale culminated in its acquisition by Core Scientific Holding Co. on July 30, 2021. The deal was a stock-for-stock transaction that positioned the combined entity as a major vertically integrated self-mining and hosting business in North America. Prior to the acquisition, Blockcap had been one of Core Scientific's largest hosting customers. The merger was part of a larger strategic move that led to Core Scientific being listed on the NASDAQ.